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HomeMy WebLinkAboutTB Budget Study Session 2010-10-15 Town of Estes Park, Larimer County, Colorado, October 15, 2010 Minutes of a Regular meeting of the TOWN BOARD BUDGET STUDY SESSION of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in said Town of Estes Park on the 15th day of October, 2010. Board: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig, Levine and Miller Attending: Mayor Pinkham, Trustees Blackhurst, Elrod, Ericson, Koenig and Miller Also Attending: Town Administrator Halburnt, Deputy Town Administrator Richardson, Finance Officer McFarland, Town Clerk Williamson Absent: Mayor Pro Tem Levine Mayor Pinkham called the meeting to order at 8:03 a.m. 2011 BUDGET PRESENTATION Each fund was reviewed and requests for additional information are noted below: CONSERVATION TRUST Revenues in this account are from the State lottery and are estimated at $30,000 in 2011. The bark beetle management ($20,000), weed control ($20,000) and Arbor Day tree replacement ($13,110) would be funded in 2011. The tree replacement allows the Town to maintain its Tree City designation. OPEN SPACE The .25% sales tax share from Larimer County is estimated at $200,000 for 2011. Capital expenditures for 2011 include Bond Park Phase I & III improvements at a cost of $500,000. COMMUNITY SERVICES Director Kilsdonk reviewed the formation of the new department in 2010 and the restructuring of two departments into one, including the Museum, Visitor Center, Senior Center, Facilities Sales and Marketing, Conference Center and Special Events. This account also contains expenses associated with the Town and Local Marketing District (LMD) Intergovernmental Agreement. The department relies heavily on the public/private partnerships for funding of activities at the Museum and the Senior Center and transfers from the General Fund. The department estimates 45% of the department’s expenses would be covered by self-generated revenues, including stakeholder services. The department continues to decrease the reliance on transfers from the General Fund, down from 63% in 2010 to 55% in 2011. Personnel increases in 2011 due to an increase in benefits and an increase in the LMD staffing levels. O&M decreases through maximizing resources. Capital expenses in 2011 are proposed at $29,500 for items at the Senior Center and the Museum funded by the affiliated support groups. The Board requested the organizational chart for the department be sent to the entire Board. • Visitor Center – There was a reduction in work force in 2010 with a resignation. Staff created 2 part-time positions instead of filing the full time position to realize a savings in personnel costs. In addition one part-time staff at the Visitor Center would be moved to the museum during the high season. Revenues are Town Board Budget Study Session – October 15, 2010 – Page 2 budgeted to remain flat in 2011; however, the stakeholder services fees may be retained by the LMD. Personnel and O&M would decrease in 2011. • Facilities Sales & Marketing – The current Service Agreement with Forever Resorts requires the Town to provide a Conference Center sales manager. Personnel costs remain flat and O&M decreases in 2011. All maintenance items under $500 are covered by Forever Resorts, therefore, all major expenses are covered by the Town. • Local Marketing District – Personnel costs increase in 2011 with the addition of one additional full time employee. The increase is offset by $184,250 in revenue from the LMD. • Senior Center – Personnel remains flat and O&M increases in 2011 because of capital projects. Revenues increase in 2011 due to an increase in fees and funds from Senior Center Inc. to complete capital projects at the center. There was a 10% reduction in the meal subsidy from the Town to the food service contractor in 2011. Senior Center Inc. received $250,000 to start an Endowment Fund that has grown to approximately $380,000 to help fund the center. The Senior Center asked for $30,500 for programs, services and capital projects in 2011 from Senior Center Inc. • Special Events – The fairgrounds was deeded to the Town and dedicated to the people of Estes Park to be used for entertainment and events to be managed and maintained by the Town. Revenues are budgeted to decrease in 2011, personnel costs increase and O&M decreasing. Staff continues to attract new events in 2011 to increase revenues. Revenues are broken into charges for services and miscellaneous that contains sponsorships, donations, building rent, program sales, etc. Staff has been working on a cost per event and should have a draft available by the end of the year. Trustee Elrod stated concern with expending funds for non-Town events such as Scotsfest. The Board requested financial information for events to determine the costs and benefit of events to the community. Discussion was heard on the marketing of the fairgrounds and the need for additional staff. Deputy Town Administrator Richardson stated the Conference Sales Manager would begin marketing the facility to lessen the load on current staff at the fairgrounds. The LMD has also been involved in the marketing of current events. Staff has booked two new events in 2011 with the Cowboy Mounted Shooting in June and the Team Penning event in July. Mayor Pinkham called a break at 9:30 a.m. and reconvened at 9:45 p.m. • Museum – Personnel costs increase in 2011 with the addition of a data technician, which is offset by a grant, Director’s salary and a part of a seasonal from the Visitor Center. Revenues and O&M remain flat. • Conference Center – The center was constructed in 1991 with a public-private partnership with Forever Resorts. The Town owns the building and has a 50- year land lease agreement with Forever Resorts. The Town receives $24,000 in concessionaire fees. O&M decreased slightly in 2011 with the final purchase of stacking chairs in 2010. An additional line should be added to the Operation & Maintenance line to break out insurance at $8,854 from the taxes and rephrase the tax line. The Board questioned if the agreement between the Town and Forever Resorts could be reviewed, and why the Town was paying property taxes. The land lease agreement can be reviewed in 2019 to renegotiate the contract as it relates to insurance and property taxes. The building is taxable because the building generates revenue and the land is owned by a private entity. LOCAL MARKETING DISTRICT BUDGET COMPARISON Trustee Blackhurst recused himself from the discussions related to the LMD. Finance Officer McFarland reviewed the comparison of the LMD budget from 2009 through 2011. He stated the main differences include the LMD retaining the stakeholder fees Town Board Budget Study Session – October 15, 2010 – Page 3 and paying payroll for all employees with an ending fund balance of $685,296 in 2011. Expenses in 2011 would be $489,548 above revenues with a total expense of $2.2 million. LMD Director Campbell requested a chance to reconcile the numbers with Finance Officer McFarland and LMD Treasurer Webermeier. The Board requested an additional study session to review the numbers and determine at what level the Town will fund the LMD in 2011. Trustee Koenig stated the LMD has set aside $500,000 in an emergency fund in 2011. She would recommend the LMD use some of the funds for the operations with the Town providing funds in the event there is an emergency. This would allow the LMD time to grow their emergency fund over a number of years by setting aside a small amount each year. This would also limit the dollar amount being requested from the Town and be a more prudent use of the taxpayer funds. Town Administrator Halburnt stated the LMD will deficit spend by $489,548 in 2011 and has consciously spent down the $1 million fund balance set aside during the first year of revenue collection in 2009. The Town has budgeted $83,000 to subsidize the LMD in 2011. The next Budget Study Session is scheduled October 22nd, 8:00 a.m. – 12:00 p.m. There being no further business, Mayor Pinkham adjourned the meeting at 10:40 a.m. Jackie Williamson, Town Clerk